Marc MacSharry (Fianna Fail)

I am glad of the opportunity to speak on this issue. I welcome the Minister of State to the House and wish him every success in his endeavours in the area of innovation. Like the Senators from Donegal, I am from the north west and have a specific interest in that area.

It would be remiss not to acknowledge the tremendous and outstanding work done by the IDA and other agencies. Senator Mary White's husband, Padraic White, was chief executive officer of the IDA for many years at a critical time in our economic development. We are all grateful that the efforts of the IDA, combined with good government, allowed us to create an environment conducive to promoting Ireland in a positive way abroad and attracting foreign direct investment. There is no question that substantial progress has been made in all areas in the past 20 years, with the attraction of many new industries and the expansion of existing IDA-sponsored companies.

However, work remains to be done. As our Donegal colleagues observed, not everywhere is thriving to the same extent. In the context of the national spatial strategy, we must prioritise development within the regions. We all want a thriving capital city, but there are tremendous pressures on Dublin. One can see this not only in terms of traffic congestion but in many other infrastructural aspects. Dublin is struggling to cope. Investors like to locate their enterprises in or within striking distance of this thriving capital city. As such, the Government must do more to make the regions more attractive.

The regrettable transfer by Aer Lingus of its Heathrow slots from Shannon Airport does nothing to enhance the capability of the IDA to market the mid-west. Likewise, the decision of the Health Service Executive to downgrade certain services in the region, most notably Sligo General Hospital and cancer services, hinders the ability of the IDA to market the area. These services provided links to other areas and reassured investors that the region had the amenities and infrastructure to support growing populations.

We in the regions, especially in the north west, wish to play our part in relieving the pressures on Dublin. It is predicted that 2 million extra people will live in Ireland in the next ten years. We must be prepared to create capacity in anticipation of demand, in line with the spatial strategy as outlined, designed and announced by the Government. We must take action to implement this strategy instead of just having a document. This will require investment that may appear disproportionate at this time. It is vital that this is done not only in terms of roads and other physical infrastructure but also in respect of energy. North of a line joining Dublin and Galway and west of Mullingar, notwithstanding the Corrib project when it comes on stream, we have no natural gas. There is a limited amount of motorway in the area. There is no university, although we have three institutes of technology. This is not to detract from the tremendous work that has been done.

If we are serious about implementing a spatial strategy, however, we must be prepared to push the boat out further than we have done heretofore. I wish the new chief executive officer of the IDA every success. He has a hard act to follow in all of his predecessors. However, given his experience in pharmaceuticals and international industry, he will be well able to meet the challenge. I have friends working in the IDA. Senator Bradford put his finger on it when he described its staff as patriots with a capital "p" in the manner in which they market this country.

Last year, it was to be announced that PayPal was to locate in Sligo. It was with huge regret that we read in the newspapers that this was not going to happen. I do not know the reasons this project did not proceed. Gateway centres such as Sligo need these types of industries if they are to play their part in taking the pressure off Dublin. We have gone a long way in recent decades in creating an environment where people can be educated and gain employment in the same region in which they grew up. However, there is much more to do in terms of a prioritisation of the regions. We have heard of the specific difficulties in Donegal. I am biased in putting forward the case for the north west. I ask the Minister of State to raise the PayPal issue with the IDA with a view to exerting as much pressure as possible to ensure a replacement employment is secured for Sligo. I do not wish to pre-empt the great work done by the IDA but I hope there will be some positive news soon.

Senator Quinn observed that our most valuable commodity when it comes to the promotion of the State is our people. We must be prepared to invest more in training, especially in the institutes of technology. This includes, in my region, Letterkenny Institute of Technology, the Institute of Technology Sligo and the Galway-Mayo Institute of Technology. We must not allow the elitism of certain elements within the Higher Education Authority to prevent institutes of technology from partaking in research and development. The facilitation of such research would greatly enhance the capabilities of the IDA to market the State, including the north west. Even more importantly, as we look to the future, it will help us to breed our own intellectual property.

I thank the Minister of State for participating in this debate. I hope he will take my views on board.